Amazon's Inventory Policy Essay
Amazon’s was started with a focus on the following four value propositions: * Convenience * Selection * Price and * Customer Service
With these objectives Amazon opted for e-business of retailing. This offered the convenience. Amazon offered more choices than a conventional retailer. Since, it had the volumes it was able to offer products cheaper to the customer. It …show more content…
3 Outsourcing Approach
Outsourcing is recognized as loyal service providing system. The term 'outsourcing' refers to as a system wherein goods and services are procured from the external sources to the organization. It is a system which accounts for the whole system of planning, management and operation to function from a self-regulating third party.
At a matured phase of inventory control, Amazon decided to outsource its inventory management and concentrate more on its core business activities and expand profoundly which could help the company capture a huge market share. Outsourcing enabled Amazon to achieve the following: * Better and faster shipping of the orders. * Reduction in inventory levels and lower costs in maintaining warehouses, distribution centers and inventory costs. * Higher revenue.
However, Amazon is exposed to the following